You are on page 1of 15

Intercultural management learning guide

Nina Jacob, 2002

CASE STUDIES SUPPLEMENT

Communications and intercultural management


Main learning message
Communication in multicultural organizations is facilitated by uniformity in the content of what is communicated. The process of communication can however reflect local cultural imperatives. Thus, the process of communication can vary from one cultural context to another, but the content should not.

Nestl
Features of Nestls approach to communication that are conducive to intercultural management: Intercultural exchanges and the development of intercultural relationships are encouraged. Thus the Nestl International Training and Conference Centre brings together managers from branches around the world to attend lengthy training programmes. At these programmes, Nestl managers are encouraged to form friendships with people from diverse backgrounds through face-to-face contact and communication. The content of important messages is reinforced periodically at all local branches. This ensures that the same message is communicated worldwide and internalized, despite differences in the process of communication. Nestl has found that there need be no fixed or right method for communicating. The objective is to create a connection between people. Managers with intercultural skills are better able to connect with people from other cultures. Nestl believes that periodic communication at regular intervals is necessary to keep branches worldwide aligned to organizational goals. It also ensures that managers from all cultures experience a sense of belonging to the organization. When Nestl introduced the Principles, headquarters received periodic reports documenting the efforts of local branches to disseminate the Principles. Headquarters responded to these reports so that two-way communication between headquarters and local branches was maintained.

General issues
Other pointers about communications and intercultural management: English is the lingua franca for communications among global corporations. Although translations of company documents into local languages is usually done to reach workers, global managers are expected to be conversant with English so that they can communicate across cultures with other managers. As far as face-to-face intercultural communication is concerned, managers should familiarize themselves with the nuances associated with a particular culture. These nuances include nonverbal communication, the manner of approach, who should be accorded deference, etc. Managers engaging in intercultural communication should ensure that what they say is not misconstrued by people from a different culture. For instance, a traditional Asian male may not like his wife to be addressed by her first name by business associates. A Westerner in Asia unaware of this may call an Asian colleagues wife by her first name just to be amiable. He or she will then be surprised when the Asian colleague becomes aloof and standoffish.

Teaching suggestions
Begin by asking the class to consider the Nestl case as a success story about intercultural communication. Most students will zero in on the importance of ensuring that the content of what is communicated across a global organization remains the same while the process of communication can vary depending on the cultural context. It is useful to ask students how managers can become more adept at intercultural communications. There are obvious points which will immediately be raised, such as language training, sensitivity to non-verbal cues, liking for other cultures, etc.

The case has dealt with official communication formulated by the top management team at Nestl then disseminated across the length and breadth of the organization. Questions which can therefore be posed are: What about other types of communication in a global organization? How should these be effected? After debating various issues concerned with the case, students can discuss the theoretical points raised in the chapter about communication and intercultural management. Emphasis may be placed on intercultural communication at the level of individual managers.

Recommendation
Given the huge number of people employed by Nestl, the company must continuously adopt methods to engage its managers in communication with headquarters as well as with other branches. One such method is to bring in managers from various branches by rotation, to attend programmes at its International Training Centre. A further method is for managers of one branch, say, Nestl France, to engage in a video conference with managers from Nestl Brazil, Nestl Canada, Nestl Nigeria and Nestl Thailand once a month for a year. After one year, they could engage in video conferences with managers from another cluster of Nestl branches.

Organizational structure and intercultural management


Main learning message
A structure that is flexible, responsive and constantly evolving is conducive to intercultural management.

CSPB, Singapore
Features of CSPB, Singapores organizational structure that are conducive to intercultural management: The individuals alignment with organizational structure is continuously reviewed. Thus, the Chinese manager who did not give feedback at Monday Meetings was encouraged to grow into the norms that prevailed. However, his way of achieving the necessary alignment reflected his personality profile and management style. The Chinese managers concern for his colleagues feelings and sense of self made him present feedback in a diplomatic fashion. This approach was then recommended to others who lacked tact and sensitivity. The Chinese manager who aligned himself with the existing structure, in turn was able to influence existing processes in a beneficial manner. The structure is thus being reinvented positively by organizational members to reflect their profiles. At CSPB, Singapore, the structure allows roles to be exchanged, enlarged or shared. This enables the organizational structure to be a negotiated one. A negotiated structure is one which can respond to the requirements of cultural constituencies to the extent that these requirements are legitimate and reflect organizational objectives. The structure is loosely coupled. Additionally, units can be attached to or detached from the main body of the organization as required. Considerable lateral communication exists and barriers to such communication are removed wherever they are noticed. Andre Keel was encouraged to be less abrasive, while SingaporeanChinese were encouraged to confront colleagues head-on. The structure thus helped the organization to accommodate diversity.

General issues
Other pointers about organizational structure conducive to intercultural management: Coordinating mechanisms are necessary to connect the various network structured branches of a global organization. Managers should be encouraged to form informal networks which cut across cultures. The power of informal groups is well known and can be used beneficially. When structural changes are introduced in a global company, it must be ensured that managers accept them. The managers may have to be prepared for the change intervention, and the way in which this is done will depend on cultural factors, among other things.

Teaching suggestions
Begin by asking the class to thing about why the loosely-coupled, networked structure at CSPB, Singapore is appropriate for intercultural management. Most students will respond by stating that such a structure allows members to influence its design. The structure can then respond to cultural influences. It is useful to ask students whether cultural diversity among organizational members is a good enough reason for having a flexible organizational structure. Do other variables, such as the nature of the task being performed, also play a role? The case has not dealt explicitly with the organizational structure at other branches of CSPB. Under what circumstances can it be envisaged that CSPB, Zurich (for instance) will adopt a more flexible structure?

After the case has been thoroughly discussed, a debate about theory can be initiated. The debate could begin with examining the concept of structure as capable of improvisation. Such improvisation would be a function of inter-alia, intercultural management.

Recommendation
As the organization stabilizes into a flat, networked, structure with little hierarchy, checks will have to be introduced so that managers can be held accountable for their responsibilities. Auto-regression, a method that stresses peer pressure, is one approach that could be adopted.

Knowledge management and intercultural management


Main learning message
Multicultural organizations should facilitate the juxtaposition of knowledge bases arising from diverse knowledge heritages so that new knowledge can be created.

IBM
Features of IBMs approach to knowledge management which are conducive to intercultural management: Managers in IBM often work in dyadic partnerships over a sustained period of time. This enables each partner to symbiotically influence and be influenced by the other, in the effort to generate and build knowledge bases. Thus Vettigers preference for long-term idea generation imbibed some of Binnings action-oriented flavour. Meanwhile Binning became a more assiduous, long-term planner as well as a researcher anchored in the here and now through association with Vettiger. Even in spiders web collaborations, managers often work in dyads within the overall collaborative framework. IBM invests in capturing existing knowledge in the form of databases which can then be accessed by subsequent researchers. Subsequent researchers are spared the effort and time of reinventing the wheel. The capturing of tacit knowledge is important as it can enable IBM managers from all over the world to have access to the same knowledge base. The IBM University Relations Database is an example of existing knowledge that has been captured. IBM managers and researchers always look for applications for their knowledge bases that can find acceptance in a wide variety of cultures. Quite often, the output is immediately accepted in all cultures. Occasionally certain features have to be modified. The output must therefore be built so that its features can be easily altered.

General issues
Other pointers for knowledge management and intercultural management: Knowledge creation is facilitated through collaborative efforts. Hence, knowledge workers and managers need to have intercultural competencies so that they can collaborate with accomplished researchers from any culture. They also have to accept different paradigms emanating from diverse cultures. They thus have to be capable of an eclectic approach to knowledge management. Knowledge managers need to operate in learning organizations. At the individual level as well they have to continuously update their knowledge base and learn from experts the world over. New forms of leadership appropriate to knowledge management global companies need to evolve. Leaders in such organizations need to demonstrate a capacity to learn and unlearn, and continuously upgrade themselves. Their standing as role models is of paramount importance.

Teaching suggestions
Begin by asking students to think about what the main challenge of knowledge management in an intercultural context is. Most students will respond that researchers are socialized into thinking along certain lines, using certain methodologies and preferring certain paradigms. This socialization process is often a function of culture. Hence when researchers from different cultures collaborate, they have to be capable of eclectic thinking. It is useful to ask students whether knowledge building in the present day requires peoplerelated skills such as the capacity to collaborate with others. What does this entail in an intercultural context? How do introverted researchers and managers who are accustomed to working alone cope?

IBM has grappled with the problems of researchers from diverse cultural traditions working together. However, there have been common reference points such as all of them having been educated in the United States, etc. How would the process of knowledge building be different if this were not the case? Start the discussion about theory by looking at products and services of this millennium that are outcomes of new knowledge created. What do the production and marketing of these products and services suggest about the nature of the interface between knowledge management and intercultural management?

Recommendation
As knowledge creation becomes more complex, it will become necessary for managers to form transient partnerships across organizational boundaries. IBM thus has to develop expertise in forming and managing extra-organizational networks. This will have consequences involving the sharing of intellectual property rights between organizations.

Conflict resolution and intercultural management


Main learning message
Multicultural organizations must audit their activities so that these do not give rise to unintended conflicts either among their diverse personnel or their diverse clientele.

ICRC, Afghanistan
Features of ICRC, Afghanistans approach to conflict resolution which are conducive to intercultural management: ICRC, Afghanistan has maintained a neutral position since it started operations. It has ensured that its activities do not create tension or new conflicts. It has performed its role professionally thus earning the respect of all feuding parties. It has also attempted to gain acceptance among the local populace by striking a rapport with as many of them as possible. In Afghanistan, ICRC has not tried to impose its way of doing things when faced with local opposition. Hence, it accepted the Taliban dictum that it should not employ Afghani women except for the provision of health care to other women. It is important when operating in a turbulent environment for a global corporation to refrain from creating further turbulence there. ICRC, Afghanistan tries to convey to the local populace that the organization shares its travails. This encourages the local populace to support its activities, or at least not oppose its presence. ICRC, Afghanistan does not allow its managers to maintain a lifestyle that is out of step with that of the local populace.

General issues
Other pointers about conflict resolution and intercultural management: A manager having to lead a team of fellow managers from a different culture may face resistance if he or she uses a management style the team is unaccustomed to, or does not approve of. Intercultural managers should be geocentric. Ethnocentric managers are likely to get into conflict situations when transacting with people from other cultures. Conflicts which arise in a global company, especially if they have cultural undertones, should be brought into the open, rather than swept under the carpet. The process of effectively working through cultural differences can induce an understanding of how culture can determine behaviour.

Teaching suggestions
Begin by asking the class to consider why ICRC was able to successfully pursue its mission in Afghanistan during the regime of the Taliban, when other international organizations had to pull out. Most students would point out that it was ICRCs cultural sensitivity that gave it the edge. Ask students if global organizations can create turbulence and conflicts in those organizations external environment. There are consequences for organizations creating such problems. For instance, the host government can ask a global organization to withdraw from its territory. The main case has not dealt with conflicts that arise because organizational members come from diverse cultural backgrounds and therefore have differences of approach. What can be said about this? Start the discussion about theory by looking at the cultural differences towards ethics and how these could lead to conflict situations. Students usually respond well to the question of why

the different stances of ICRC and the Taliban towards ethics did not lead to a conflict between the two.

Recommendation
Currently ICRC, Afghanistan is operating in an environment which has less armed conflict and turbulence than previously. It should evolve a step-by-step strategy for operating in a more stable environment eg it might decide to train young Afghani women so that they can become the health care providers of tomorrow. The training method should fit into the emerging culture in Afghanistan and should not result in new, unanticipated tensions.

Expatriate management and intercultural management


Main learning message
Global organizations should have expatriate management expertise. Some managers are strongly motivated to learn skills in intercultural management and are therefore better suited to be expatriates.

ICAS
Features of ICASs approach to expatriate management that are conducive to intercultural management: The provision of appropriate organizational support to expatriates enables them to adjust to a new culture. The required organizational support should be comprehensive and extend to the immediate family of the expatriate. This organizational support should be holistic and include providing information about how to use the local public transport system, how much to leave in a restaurant as a tip, what meal timings are in the local culture, etc. ICAS has attempted to provide a wide-ranging, comprehensive service to its clientele. ICAS believes in preparing the local branch for the arrival of expatriates from other cultures. Sometimes, local managers can experience tension because of suddenly having to interact professionally with foreigners on a daily basis. ICAS believes in equipping expatriates with inputs specific to the country they are going to. Thus, an English expatriate moving to Spain would be given a course in Spanish, introduced to contact families at his or her place of residence in Spain, informed about Spanish preferences for food, and about how Spaniards like to spend time over lunch, etc.

General issues
Other pointers about expatriate management and intercultural management: Intercultural skills can be learnt. However, managers should be motivated to learn and have a basic liking for other cultures. Otherwise, expatriates will not be able to relate well with local managers. Many expatriates have been rejected because of their lack of intercultural sensitivity. Expatriates have to be wary of taking management practices they are familiar with in one culture and applying them to another cultural context, without ascertaining whether those practices will work locally. Effective expatriate managers are basically people-oriented. They are able to strike a rapport and make a personal connection with people from cultures different from their own.

Teaching suggestions
Begin by asking students to consider whether expatriate management is a specialized field of HR management. Most students would agree but also aver that the sub-field is developing an identity of its own and that effective intercultural management would not be possible without sufficient attention being paid to expatriate management. Ask whether global organizations should set up their own expatriate management cell at every branch, or whether they should outsource from organizations like ICAS. Students can also be asked why an assessment of a managers intercultural competencies should be made before he or she is selected as an expatriate. Start the discussion about theory by looking at the special services that ICAS offers, which normally do not fall within the scope of HR management. What are the points of divergence between HR management and expatriate management?

Recommendation
ICAS should tie in its efforts at expatriate management with individual managers need for career development. A managers work experiences in diverse cultures should be in line with his or her overall career aspirations and ICAS could think in terms of broadening its repertoire of services accordingly.

Core values and intercultural management


Main learning message
It is recommended that multicultural organizations be held together by strong core values. These core values are superordinate and hence have precedence over ethnic values. The core values selected should include intercultural sensitivity.

Nestl
Features of Nestls approach to core values which are conducive to intercultural management: In Vietnam, Nestl employed techniques to embed core values that were appropriate to the local culture. Thus, the concept of the family, a very important component of Vietnamese life, was used to foster team-building efforts. However, the core values that were disseminated were the same as for all branches of Nestl worldwide. It was also made clear to personnel that an inability on their part to accept and subscribe to Nestl core values would be viewed unfavourably. Nestl believes it owes its reputation of being a professionally managed company to the fact that all its managers subscribe to the same core values. Hence when a manager from one culture meets a Nestl manager from another culture, they are able to relate to each other because they uphold the same values in their professional lives. One of Nestls core values is that its managers should have intercultural competencies. This core value is sacrosanct.

General issues
Other pointers about core values and intercultural management: Core values compatible with intercultural management are more likely to be accepted by managers whose background has predisposed them to have cultural sensitivity. Hence recruitment of the apposite managers is all important. In a global organization there are likely to be sub-cultures defined by national or ethnic cultures. The sub-cultures are acceptable provided they do not espouse values in opposition to corporate core values. The other variables that define a global organization (other than core values) such as structure, leadership, HR policies, etc must be designed so that they are in alignment with the core values.

Teaching suggestions
Begin by asking students to outline the purpose of core values for a global organization. Most students will respond that core values will serve to hold the organization together across cultures and that strong core values will achieve this purpose more effectively than would otherwise be the case. They would also observe that core values enable managers from diverse cultures to be put into a cultural melting pot. Ask students what sort of core values are appropriate for specific global organizations. They can then compare the core values they have suggested with those that exist in reality. The case does not discuss what can be done if an existing core value is to be removed from a global organization. Can such a scenario be envisaged? Can students present examples, even hypothetical examples of this? The discussion about theory could start with the question: Are the core values appropriate for a global company different from those appropriate for a national company, having operations in just a single region?

Recommendation
Every decade, each branch should devise new ways of assessing whether their managers have internalized the Nestl Principles. A single questionnaire item is currently used to ascertain whether managers are willing to accept and able to manage change. Further questionnaire items could be added such as: Examples of changes in management practices adopted and Extent to which the manager is perceived as capable of coping with change as reflected in a 360 degree feedback survey, etc.

Corporate strategy and intercultural management


Main learning message
It is recommended that multicultural organizations be capable of glocalization: of having global missions, policies, and objectives that are capable of local adaptation when implemented.

BMW
Features of BMWs corporate strategy in Thailand which have facilitated intercultural management: The CEO of BMW Thailand had been a member of one of BMWs International Management Training Groups. These Groups give BMW senior managers inputs in intercultural management by making them visit different countries and solve live management problems there. A BMW manager has to demonstrate competence in intercultural management before he or she can become part of the top management team in a foreign culture. BMW always keeps its long-term objectives in mind. One of these is to gain acceptance in new locations. Hence the organization tries to fit into a new niche without creating disruptions locally. This ensures that it does not acquire a reputation as a killer company. Once it starts establishing itself in a new country, it slowly disseminates among its employees the BMW way of doing things. Part of BMWs market-assessment and environment-scanning efforts involves reviewing cultural trends. The corporation accepts the fact that culture is dynamic and amenable to evolution and change. It therefore keeps abreast of these cultural changes so that it can implement its strategies in a manner that will find local acceptance.

General issues
Other pointers about corporate strategy and intercultural management: When a global company starts operations in a new culture, it is advisable that it initially enters into a collaborative arrangement with a local partner. This partner can then educate the global company about how business is done in the local culture. Corporate strategy should be capable of adjustment in response to feedback obtained from different cultures. Sometimes the feedback may be contradictory and the overall corporate strategy should be flexible enough to accommodate opposing responses from local cultures. The strategy formulated at headquarters by a global company must be understood and accepted by local branches. It is well worth spending time making local managers appreciate the top management perspective through special seminars and programmes.

Teaching suggestions
Begin by discussing the concept of glocalization. Students can then be encouraged to cite examples of glocalization from companies they have studied. Ask whether branch heads should be from the local culture or expatriates with intercultural skills. Perhaps it is just a question of assigning the most competent person for the job? Or is it? Discuss the circumstances under which glocalization may not be feasible. Ask whether glocalization will always be valid within the context of intercultural management. Start the discussion about theory by looking at advertising from the prism of corporate strategy. Advertising by a global organization can then be compared to glocalization. Students can be encouraged to contact a global advertising company to discuss a few of its global advertising campaigns with its managers.

Recommendation
BMW may like to institute a special cell at all its branches to monitor cultural trends. These trends can then be conveyed to corporate headquarters. BMW can then formulate corporate strategies that can be implemented in diverse as well as changing cultures.

You might also like